November 9, 2006
Macy’s Learns New Ways to Communicate
It has certainly not been easy for Macy’s since the decision was made that the Marshall Field’s banner would no longer hang over department stores in Chicago and other markets throughout the Midwest.
Rumors have abounded that sales are way off, but Frank Guzetta, former president of Field’s and the current chairman and CEO of Macy’s North, said things are looking up and it all comes down to communication.
For one, Mr. Guzetta told the Chicago Sun-Times, Macy’s has found a means to bridge the promotional language used by Field’s to suit its own purposes.
“We’re spending a lot of time and attention on helping customers translate what they are used to into the new events,” he said.
For example, Marshall Field’s used to run “Field Days” sales, while Macy’s term for the same event was a “Red Sale.” Macy’s has begun running ads with the words “Field’s Days are Red Hot” to create a point of reference for long time Field’s shoppers.
“Communicating [sales days] correctly has been the hardest thing we’ve had to work on since the [Macy’s] launch,” said Mr. Guzetta.
Anne Brouwer, a partner at McMillan Doolittle, said former Marshall Field’s shoppers have had to get used to other changes, as well. She observed that Macy’s runs fewer sales events than Field’s had previously. It also typically runs multi-day events during the week rather than on weekends, as had been done by Field’s.
“There’s a change in the [marketing] calendar and cadence” with Macy’s, she said.
Macy’s has faced its toughest adjustment in Chicago where some shoppers cut up their old Marshall Field’s credit cards in protest at the name change.
Mr. Guzzetta said many were upset by the change but that popular opinion is swinging around. For one thing, he maintained, Macy’s has significantly increased the number of credit card holders over the number that held Field’s plastic.
Still, said Ms. Brouwer, Macy’s has a ways to go. “Field’s shoppers here are saying, ‘Prove yourself to me; show me that you’re not going to completely destroy my Marshall Field’s,’ ” she said.
Macy’s believes it can build a bridge to Field’s loyalists by preserving some of its traditions, such as its decorative holiday windows. This year, Macy’s is going with a Mary Poppins’ theme.
Old Marshall Field’s favorites such as Frango Mints are also selling very well under Macy’s roof and the department store is also displaying Field’s Christmas ornaments and a cookbook.
The key, said Mr. Guzzetta, is communication. A number of Marshall Field’s loyalists upset about the change to Macy’s have kept up an email dialogue letting him know what they dislike and like about Macy’s.
“I see that as a positive,” he said.
Discussion Questions: Is Macy’s doing the right things to bring as many former Marshall Field’s shoppers as possible into its fold? Is it doing the right
things to bring in shoppers that weren’t fans of Field’s and preferred other department store choices in the same market?
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As a Michigan shopper who went through the change from Hudson’s to Marshall Field’s, the switch from Marshall Field’s to Macy’s has been a bit more difficult for me.
Marshall Field’s was very good about having very strong and relatively frequent sales where Macy’s seems to be in more of a “15-20% savings” mode in most everything they do. I see this as an ongoing theme in their newspaper as well as their direct mail campaigns.
As I am also unfamiliar with their Corporate Brand products I have a tough time discerning the quality levels of the Macy’s own-brands versus the Field’s own-brands. Field’s had an outstanding top quality dress shirt for $49.99…when shopping at Macy’s it’s tough for me (and the former Marshall Field’s associates) to know if an exact comparison exists. Perhaps they should have kept some of the Field’s image products in stock and made a more conservative change in the merchandising mix and promotion programs.
In the long run I think Macy’s will win me over…in the short run I’m feeling like the quality image of the store is a bit lower than Marshall Fields in my mind.
Mr. Tesler misses the point himself when he says Macy’s will succeed with the right goods at the right price and all the other details are irrelevant. Such details may be irrelevant in other cities, but Chicago is no other city. Why do Chicagoans consistently buy tickets to watch the Cubs lose games and end up near if not in last place? Why do Chicagoans consistently pay inflated prices to eat food outside at the Taste of Chicago during one of the hottest weekends of the year? Because these are truly unique Chicago experiences, ones that make us proud to be Chicagoans and ones that make enduring 6 months of winter each year worth living here. All of the seemingly insignificant changes Macy’s has made to the State Street store have destroyed the uniqueness of the retail experience. As I said in my second letter to Mr. Guzzetta, it all comes down to the name. Without the name Field’s, our eyes open to stores we may not have considered before, Target, Kohl’s and Carson’s at one end and Nordstrom, Saks and Barney’s at the other. With a name that everyone loves to hate, Macy’s lost the retail battle before it even started.
I believe Macy’s will continue to face an uphill and ultimately losing battle in the Midwest because they simply have no obvious market in cities where they have replaced the beloved Marshall Field’s name. It is NOT a communications problem and it is laughable to suggest so.
In just two months it is very obvious that Federated has taken Macy’s way down-market from Field’s and customers are not happy. There is simply no compelling reason for people to shop at Macy’s and many reasons to choose not to. A number of designers whose goods used to be carried by Field’s have removed their lines from Macy’s. Trust me, cutting edge young fashionistas (male or female) aren’t going to be caught dead in Macy’s, now.
For the budget shopper, Kohl’s has stuff that looks pretty much exactly like Macy’s merchandise mix for a lot less money.
Traditionalist working women are boycotting Macy’s on principle and older, wealthy, style and community leaders have plenty of upscale stores and boutiques from which they can buy clothing and housewares to impress their friends.
So who’s left to do their shopping at Macy’s? Based on the dearth of Macy’s shopping bags that one notices on the streets and commuter trains around Chicago, apparently nobody. An earlier commenter stated that Macy’s needs to just forget trying to appease the angry former Field’s shopper and start anew. But “start anew with what market segment?” would be my question. And why would Federated pay big bucks to acquire a legendary department store brand and building if they’re going to “start anew”?
For generations the Marshall Fields stores served as the bridal and bridal registry leader. There was a tradition in saying that your bridal gown or mother of the bride outfit came from Marshall Field’s. Tourists from around the world came to see, shop, and bring home souvenirs from the historic State Street Field’s and it has been said that last year it was the number three tourist attraction in Chicago. For Guzetta to point out that that the Marshall Field’s Frango candies, legacy Christmas ornaments, and cookbook are selling well sort of makes the point doesn’t it? Federated can say they are keeping the traditions alive that people loved about Field’s but all the “communication” in the world can’t make it the same experience for locals or tourists.
As a native Midwesterner and former Marshall Field’s shopper I am sure bias shows in my comments. But, professionally, as a lifelong marketing manager in a variety of industries I must say I have never seen such flagrant disregard for an existing and loyal customer base as Macy’s has recently demonstrated.
After the 9/11 attacks, the country was united. But what FDS forgot is that a lot of the time Chicagoans don’t agree with New Yorkers (the whole second city thing) so what did FDS do? Take away a very Chicago tradition and replace it with a New York one. Bad business move, bad move period.
It is becoming more and more obvious that FDS has made a huge mistake in the Chicago market. Quite simply, they do not understand the market. Marshall Field’s was not the same as most of the other May Company stores they acquired. While many of the May stores were middle market and quite similar to Macy’s, Marshall Field’s was a better store than Macy’s. It is the dumbing down of the store (especially State Street) which infuriates Chicagoans. Chicagoans, unlike most of the country, are generally not impressed with New York stores, restaurants, and clubs; especially when they come into the market convinced that they will educate us on how to shop or eat. That arrogance is the kiss of death in this market. Walk into Bloomingdale’s (either 900 N. Michigan or the Home Store on Wabash) on any weekday if you would like to see how unimpressed we are. We are not like San Franciscans, who apparently are fawning over the recently opened Bloomingdale’s as if it was the second coming.
I work in the Loop and see almost no Macy’s bags. Walking home along Michigan Avenue I see a few Macy’s bags near Water Tower, but nowhere near the volume of green bags of last year. The suburban stores are dead. Those markets have an abundance of Macy’s-like stores such as Kohl’s, Penney’s, Sears and Carson’s. The upscale Field’s customer has left for Nordstrom and beyond.
I have yet to meet one Chicagoan who thinks this has been a good idea. More often than not, when we see that red star we only see red.
Macy’s has done the same thing to Filene’s in the Northeast – different brands, less merchandise and so far, every time I go in to look around (and reading this has just reminded me that I have bought nothing there in months – due to the change of product) the store is not as busy as it used to be. Reminds me of the wonderful days of The Limited – great brands like “Outback Red,” etc., and variety… and now, the variety is limited to about a dozen similar styles in half a dozen colors… and less business because there isn’t much that sets them apart.
These big mergers in Retail never–as far as I can see as a consumer and a retail worker– result in lower prices and/or unique goods but I guess they must be good for Wall Street?
Marshall Field’s is a part of the Chicago soul and psyche. To misjudge this and discount the importance of the institution that Marshall Field’s WAS for Chicago is an even further insult upon insult by a misunderstanding Federated. For a while they seemed to have on Rose colored glasses saying they were “keeping the best of Field’s” and that there will be some problems which should smooth themselves out.
Anyone who knew Field’s knows the loss of fine merchandise and the replacement of that merchandise with inferior and expensive merchandise. There are way to many options for the Chicago shopper and while this might NOT be the case in all the other May Co. cities, it IS the case in Chicago. Perhaps in the South, Central Midwest, and Southwest, there are not the alternatives for shopping and people are simply left with Macy’s or nothing. HOWEVER in Chicago, one simply needs walk down the street or through the mall for a number of OTHER choices and this is a real problem for Macy’s in Chicago. I agree that the feel of the State Street store is completely different and feels “cheaper” to me also – as was mentioned.
If Macy’s had compelling merchandise that was high end and good quality, the Field’s shopper might have come back. This really is not the case and Macy’s in Chicago WILL have to try and find a new shopper and new demographic for shoppers in its stores. This will be very difficult in Chicagoland as there are TOO many middle and high end alternatives. The high end former Field’s shopper will simply go on to L&T, Von Maur, Nordstrom, NM, and SFA. The middle market shopper is really divided in Chicagoland with Carson’s, Penney’s, Kohl’s, Sears, Target, and stores like Marshall’s, TJMAXX, and Filenes Basement -all with multiple locales. The Value Shopper has the above mentioned stores and the other discount stores and are NOT going to pay $300.00 on a reduced Alfani jacket. This is a very difficult position for Federated to be in.
I live in Atlanta, and have seen a merry-go-round of store names in our market – Davison’s was bought by Macy’s in the 1920’s, who modeled their downtown store after Herald Square, and made it well known that they were part of R.H. Macy & Co. Then in 1986 they were renamed “Macy’s” and brought a high-end “Cellar” area to the downtown store.
After the Federated/Macy’s merger, Macy’s stores no longer were competitors with Federated’s Rich’s, they were almost like clearance centers. Finally they were all closed and two re-opened as Bloomingdale’s. Then Rich’s became “Rich’s/Macy’s,” and now it’s just “Macy’s.” After all this, Federated has the audacity to claim that the name conversion was a model for success elsewhere! What name conversion? There were always Macy’s in Atlanta, and Macy’s customers; they just ran off the (higher-end) Rich’s customers.
Marshall Field’s was a destination for people from all over the world, offering quality merchandise at fair prices, especially their store brand products. The traditions and service magnified the positive impression you got from the selection. It was the quintessential department store shopping experience.
Macy’s store brands are inferior in quality and more expensive than Field’s. Many of the higher-end vendors like Prada and Dolce & Gabbana either won’t deal with Macy’s because they’re too down-market, or Macy’s pushed them out so they won’t compete with Bloomingdale’s. I have witnessed staff at several Macy’s stores chatting in groups behind the counter, because their training instructs them to be cashiers, not salespeople. The cash registers are clearly labeled and price scanners and shopping carts dot the sales floor, all to avoid interaction between customers and employees for any longer than necessary.
Whoever is behind the changes that Macy’s is making to Marshall Field’s has no understanding of customer service. The customer treated like a queen when buying a $10 pair of socks will come back to buy a $100 purse and $1,000 in china. The customer treated like they’re in the checkout line at the grocery store will NOT be back.
Mike, that is the root of the problem. People are complaining because the right goods and right products are not there at the former Field’s store!
You all know I love this topic very much. I am a born and raised Chicagoan, who now works a large (non department store) retailer in the store design department here in Chicago.
I must say my personal opinion is that FDS really “shot themselves in the feet.” in Chicago.
Yes, the article claims Macy’s is making headway, but today in the same Sun Times, the same reporter is now reporting about FDS $3 million dollar loss related to the takeover of Field’s and other May Stores.
But let me convey some observations of what I see “on the street” here in Chicago as far as how people are accepting Marshall Field’s.
-I use Metra Commuter Rail everyday and see hundreds of people daily. I used to observe many outbound commuters carrying Marshall Field’s bags home from their work day in Chicago…out of 100 people, I would at least see 10 everyday, mostly women. Now, I have seen NO Macy’s bags with the same masses of people in Union Station or on the train. In fact I have seen more ladies carrying around the old Field’s bags, than I have seen Macy’s shopping bags.
-Bring this up in a topic at a dinner or lunch table anywhere in the Midwest and you are bound to have a bad after taste in your mouth. I bring it up to people whether at work or for fun, and the same resonating response is “How could they get rid of Fields? How could they get rid of Fields?” shaking their heads.
-Lastly based on media reports, Federated has done many things to “improve” customer service…including:
-eliminating free beverages for Regards customers. (per interview with Frank Guzzetta back in September in the Star Tribune)
-eliminating free delivery of a product if you it was not in stock at the store you are at. (Star Tribune)
-playing light rock instead of classy jazz in the store. (personal observation)
-eliminating cafes and cafeterias at may of the suburban stores. (personal observation)
-laying off maintenance staff at the State Street store. (per Chicago Sun Times)
-removing any classic photographs and anything related to Marshall Field’s at the State Street store (minus the archive) and replacing it with Macy’s EDV signage. (personal observation)
-Replacing many familiar popular brand names with products that sound like brand names, but are FDS brands: Alfani = Armani, Charter Club=Ralph Lauren. (personal observation)
-Banning Photography in all former Field’s store including State Street, which means customers won’t be able to photograph the Great Tree, take family pictures inside State Street Walnut Room, or take architectural photographs at State Street without written permission from FDS. (source: its on the door when you walk into State Street)
Now someone please correct me if I am wrong, but how are these changes going to win Chicagoans over? If I was a customer I would go running in the opposite direction!
When Nordstrom opened on Michigan Avenue and Oakbrook back in the 1990’s, there were lines to get into the stores for a week!
Macy’s had a line for about two hours and that was only at State Street on September 9th.
I must admit, from all the stores I have been to, all of the suburban ones have been dead. The only stores with a good amount of customers is State Street and Water Tower.
Something needs to be done before it’s too late!
I think talk about brand, events, language, bags etc. all miss the point. If Macy’s has the right goods at the right price they will ultimately win in the Chicago market irregardless of the nameplate. MF was not selling a lot that was significantly different and the sentimentalists probably miss the MF of the 1970s much more than they do the store of 2004 that was indistinguishable from any other May or FDS store except for the nameplate. Macy’s may struggle in Chicago but if they do (long run) it will not be because of the name.
Macy’s is undermining its own rationale for its single national brand strategy. Although the following language is from a Macy’s ad dated 11/7/2006 in the New York Times, it’s typical of many other Macy’s ads:
“This advertisement applies to Macy’s stores in NY (excluding Binghamton and Horseheads), PA (excluding Altoona, Frazer Heights, Greensburg, Hermitage, Homestead, Monaca, Pittsburgh, Scranton, State College, Washington, West Mifflin and Wilkes-Barre), VA (excluding Hampton, Lynchburg, Newport News, Norfolk, Richmond, and Roanoke), CT, DE, MA, MD, ME, NH, NJ, RI and VT.”
The Big Strategy: One brand name, national advertising, consistency. The execution: one brand name, inconsistency.
I am in Chicago on business this week. I took the opportunity to see exactly what Macy’s has done with Field’s. I am not impressed. The stores have a cheaper feel to them and you definitely notice a lack of Macy’s shopping bags on the street (compared to the sea of green Field’s bags one used to see). The store (Water Tower specifically) looks to be in chaos and the loss of better quality goods is apparent. I don’t foresee this Macy’s ever being the quality that Field’s was. In short… the stores have lost their special ambiance.
Macy’s has made a show out of being “less promotional” than Marshall Field’s and the other May divisions (which, if anything, had a heritage of being more promotional than Field’s). Hard to tell this is the case from the constant blizzard of newspaper inserts and particularly direct mail offers involving extra discounts for using your Macy’s card.
Trying to evoke “Field Days” during the Red Hot Sale is certainly not going to solve Macy’s issue of how to clean up its perception problems in Chicago. Their quarterly earnings and follow up comments to the press suggest that a big part of the October sales shortfall is happening in the Home Store, which is merchandised more centrally.
Perhaps one solution to this problem is to give the divisions (such as Macy’s North) more autonomy in running businesses like Home. Yes, it adds expense but Macy’s can’t afford long-term hits to the top line if the May acquisition is to be leveraged successfully. In the meantime, Macy’s needs to send a clear, consistent message to its target customer…once it figures out what the message is to be.
Adapting the communication message to have familiarity with the old Field’s message is nice, cute, and clever, but won’t work. It doesn’t make any difference how much the new communication sounds like the old communication when the policies, events, and procedures are different. It is NOT the Marshall Field’s that consumers knew with their specific sales events, procedures, merchandise, and consumer-centric approach. No amount of “Marshall Field’s” type communication will make those changes go away. Federated has never understood that consumers like the old store because of its policies, procedures, and processes that were consumer friendly.
Will the cost savings of having only one brand overcome the loss of sales? That analysis is based on the old oxymoron “intelligent loss of sales.” By abandoning the store brand names, Federated only bought the real estate of May. Since Target and Costco can both sell the same Asian made shirt at a lower price than Federated, it is only a matter of time until the Federated financials copy the flight of a maple leaf in the fall.
As a colleague in the New York market pointed out so clearly yesterday, “there is no point in comparing same-store sales in the former Marshall Field’s locations because it isn’t the “same store.” Macy’s really needs to consider this a fresh start and not try to hang on to the Marshall Field’s customer; they are gone and resent not only Macy’s but the social, demographic, and economic changes that the demise of Marshall Field’s represents in our country. Whether or not those are good changes is a different discussion.
To add to the very complete list above of the changes to the State Street flagship, add:
– Red neon strip lighting installed around the circa-1907 Daniel Burnham designed (and restored) North Atrium
– Papyrus gone and replaced with American Greetings, in case there is not a supermarket or discount drug chain store handy
– Store signage in Spanish
– The pen shop gone
Time to head to Nordstom, and Lord & Taylor while they are still there, Chicagoland. This is my family’s first Christmas with no Marshall Field’s (or Macy’s North) merchandise since 1937.
Oh my, another week, another “FDS has shot itself in the foot” discussion… can they possibly have any toes left?
I think this question really should have read ” Is Fed/Macy’s doing everything it can after it thoroughly alienated everyone in the first place ?”
As for when – if ever – “success” will be achieved, it obviously depends on how that term is defined: total sales have grown over the years (in no small part due to acquisitions) but the /sq. ft figures are lower (or at least no higher) than they were 10, 15 or (even) 20 years ago; the May pick-up seems destined to further that trend.
As for my own personal observations, when I was in the State St. store on a Saturday (sale day) it was uncomfortably – though marvelously so – crowded, but by Monday, it was church quiet ( I didn’t conduct a Metra survey…but the scenery on the Milw line was well worth the $5 weekend pass.)
Mike, I have to respectfully disagree with your comment, “MF was not selling a lot that was significantly different and the sentimentalists probably miss the MF of the 1970s much more than they do the store of 2004 that was indistinguishable from any other May or FDS store except for the nameplate.”
I am hard-pressed to think of any other May or FDS store with the possible exception of the flagship Bloomingdale’s where one could purchase a mink coat, a grand piano, a set of Waterman pens, take a break for a white tablecloth lunch with a bottle of wine, jump back in to buy a Lalique vase, pick up some paper plates and napkins, wrap the Lalique vase yourself from an entire wall full of by-the-sheet wrapping papers, send a gift-wrapped birthday present to a friend across the country, and end the day with take-out orders of mooshi pork and weinerschnitzel for those hard-to-please kids at home. THAT was shopping at Marshall Field’s State Street and if you think that is “any May or FDS store,” then let’s find a nearby Robinsons-May to explore.
We have lost a lot.
I agree with William Passodelis (his quote below)
“Anyone who knew Field’s knows the loss of fine merchandise and the replacement of that merchandise with inferior and expensive merchandise. There are way too many options for the Chicago shopper and while this might NOT be the case in all the other May Co. cities, it IS the case in Chicago.”
Without any prodding, 9 friends, all professionals, all employed and covering a demographic including white, Hispanic, black, gay, and straight have commented negatively on merchandise quality, selection, and overall feel of the converted Marshall Field’s stores.
Some Detroit stores employees indicate that package pickup is to be “discouraged” as the duties for this task have now been formally assigned to the “working managers” and if they are busy, forget getting your package downstairs quickly. When I questioned when that went into play, the exasperated reply was the day the name changed.
A long time salesman went out his way to apologize to me for the lack of tall/extra tall merchandise that replaced Field Gear. “Macy’s way to shop” for men sizing ends at XXL and doesn’t consider those of us who have a 36 inseam or a true 36 or 37 inch sleeve.
The management at FDS, according to reports, is expecting 4 million “visitors” to the State Street store this holiday season. They may not realize that the massive crowds that flooded State Street last year, gobbling pot pies under the great tree, snapping family pictures while standing in line at the Cozy Cloud Cottage and hoarding anything with the MF logo were there because the era was ending and many of the predicted dire consequences have come true.
Visitors may be the most accurate term for this holiday season. The tasteless red neon ringing every floor of the restored North State room may not contribute to hearty pot pie consumption–the notices at the doorways prohibiting any photographs will not encourage family memories at the Cozy cloud or the snapshot taken by the waitress with 50 years tenure at the Walnut Room.
If Terry Lundgren makes a surprise visit to his Chicago flagship this holiday season, he might very well find a store crowded with “visitors.” In January 2007, when sales figures are reported did the former Marshall Field’s customers obey the new “Way to Shop” rules?
“Chicagoans give it a rest,” says the former Marshall Field & Co.-Evanston store employee. Remember that moniker? When the twine was gold metallic and green trucks traversed the surface streets all over Chicago. And yes, it was before the now beloved and dearly departed Marshall Field’s.
The best quote I’ve heard is, “Comiskey is now US Cellular (Sox won the Series), the Stadium is the United Center (Bulls won three championships), Soldier Field changed and the Bears are on a tear and selling out every game.”
You see, the name game or the shape of the box matters little. What happens inside is what counts.
If Macy’s sells what folks want, it will succeed no matter how many boxes of Frangos are in each basket.
In the end, will you feel great putting that gift under your Christmas tree this year because the person that opens it will love the gift or that the box isn’t green?
Leave the emotions for the cocktail party. We are here to sell more tomorrow than a year ago.
It’s tough love, but remember, “retail ain’t for sissies!”
A very lively discussion. Federated/Macy’s made a terrible mistake renaming the Chicago area stores, especially the State Street flagship.
If this Christmas shopping season turns out to be poor in comparison to same store sales last year operating as Marshall Fields, they, FDS, should just swallow their pride, like the aftertaste of a can of “New Coke,” and allow the State Street Store to revert back to being called Marshall Field’s.
Then they can bring back the better merchandise, and set up Field’s departments in their downtown Minneapolis and larger former Marshall Field’s stores.
As the first writer stated, the Macyfication is not working. Reading all of that fine print on the bottom forth of each Macy’s ad is hilarious. This all means that the former May stores are Macy’s in name only.
Bring the Field’s green back to State Street, before the red ink gushes all over future FDS financial reports, and sinks the FDS/Macy’s ship for good.
J. McKay, editor of http://www.fieldsfanschicago.org, wrote me that he has heard from “diverse, well placed sources” (consider that as you wish) that sales at State Street are down at least 30%. If the former May stores are down 6% overall and the former Field’s stores down 10% overall, is this figure a real possibility? According to the 21st Annual Holiday Survey of retail spending and trends, commissioned by Deloitte & Touche, 25% of Chicago area shoppers said they will shop less at Macy’s this holiday than they did at Field’s. Another 4% said they would shop more at Macy’s and 37% said it made no difference. The remainder didn’t shop at Field’s last year and don’t plan to shop at Macy’s this year. So of the 66% that did shop Field’s last year, 38% (25/66) plan to shop less. And at http://www.nbc5.com, a survey found over 80% of web site visitors are avoiding Macy’s because of the name. This doesn’t sound like a communications problem to me. Chicago — for whatever reasons, emotional and rational — is not happy with the switch. In Safeway vs. Chicago, Safeway talked until it was blue in the face and Chicago dealt it considerable losses in equity and market share. In the face of such an overwhelming negative response, to think that a strategy of pumping up marketing and merchandising will reverse the trend does not show much business savvy. Mr. Lundgren, do you want to save money or make money? If you want to make money, then take State Street out of your national Macy’s chain and turn it into back into a Field’s that rivals Barney’s or Bergdorf Goodman. Restore the brands like Jimmy Choo and D&B. Restore the private labels like Field Gear (which you can also sell at Macy’s). Restore the green awnings and bags and take down that ridiculous red neon. You’ll find that your increase in sales by having the best department store, rather than the biggest, far outweighs the costs. I mean please. Is the cost of paper bags worth the loss of customers? And if you still insist on saving money, you may as well just shut the State Street store now because you truly do not have a grip on the State Street customer.
I remember my first visit to Marshall Field’s in 1982. It was the Water Tower Place Store. My mom bought some shoes, and she was given a wonderful shopping bag that she had for several years. It had the Chicago Skyline in the background, and the signage on the bag said, in big green letters: “Marshall Field’s IS Chicago!” That pretty much said it all. Coming up from Western Illinois, it was a treat for her (and myself) to see the selection at MF compared to what we had in Galesburg, Peoria, etc. Not knocking these smaller markets, but it wasn’t the same. Now, Peoria: Macy’s, Springfield: Macy’s, Carbondale: Macy’s, Chicago: Macy’s…Whoop de do.
Terry Lundgren said in the Chicago papers this week that “Marshall Field’s couldn’t make it in Texas, they couldn’t make it in Columbus…” Well, Columbus used to be “Lazarus,” Texas “Foleys” (among others). The problem is these stores became the “same”…down to the same tile and fixtures on the sales floor. If we wanted that type of sameness we will go to Sears or Penney’s. This strategy of making a national “brand” upper level department store for the masses just won’t work.
When the former OT Johnson’s department store building burned down earlier this year in Galesburg, IL; the local paper was filled with local citizens remembering shopping there. One reader mentioned that her mother was one of the costume jewelry buyers, who made trips to New York 3 or 4 times a year to scout vendors for special pieces that she knew her local customer in Western Illinois would like. How special is that? Every city or region, big or small, had their own nicer department store that reflected the local taste. Now the buyers in god knows what city (most likely far, far away from most of us) are making these decisions….
I’m a lifelong Chicagoan like many others who have added their comments here. I’m not speaking here as a marketing expert, just a shopper. But any native Chicagoan could have told Macy’s what would happen if they messed with Marshall Field’s. I know people who wouldn’t consider shopping anywhere else.
Though I didn’t shop at MF frequently myself, I would go there for nicer things, especially for gifts for others. The green boxes and bags had a certain cache. It was almost a joke–you’d save the box and re-use it just for the label. Field’s staff was always helpful and congenial — no, make that “gracious.”
I haven’t been to Macy’s since they changed the name. I don’t plan to shop there ever. With the name change, they disrespect Chicago. It’s just that simple. At a family Christmas gathering, with reports that Macy’s holiday sales were down, we were all rather pleased and hoping now they’d pack up and go back to New York.
I might add, Macy’s only rubbed salt into the wound when the store opened with signage that mislabeled the streets outside. Yes, it may be a “Second City” thing. It was like these “red-hot” New Yorkers were going to come in and show Chicago how it was supposed to be done. OK, we’ll see how that works over the long-term.
Similarly, a Chicago grocery chain, Dominick’s, is now being run by Safeway. Everything is overpriced and I think they changed the arrangement of merchandise on the shelves just to confuse people. Men in suits constantly run around with clipboards. Safeway widened the aisles and the produce is arranged very prettily, but I don’t shop there anymore, either, when I can go two blocks down and buy the same merchandise for about 15% – 20% less.
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As a Michigan shopper who went through the change from Hudson’s to Marshall Field’s, the switch from Marshall Field’s to Macy’s has been a bit more difficult for me.
Marshall Field’s was very good about having very strong and relatively frequent sales where Macy’s seems to be in more of a “15-20% savings” mode in most everything they do. I see this as an ongoing theme in their newspaper as well as their direct mail campaigns.
As I am also unfamiliar with their Corporate Brand products I have a tough time discerning the quality levels of the Macy’s own-brands versus the Field’s own-brands. Field’s had an outstanding top quality dress shirt for $49.99…when shopping at Macy’s it’s tough for me (and the former Marshall Field’s associates) to know if an exact comparison exists. Perhaps they should have kept some of the Field’s image products in stock and made a more conservative change in the merchandising mix and promotion programs.
In the long run I think Macy’s will win me over…in the short run I’m feeling like the quality image of the store is a bit lower than Marshall Fields in my mind.
Mr. Tesler misses the point himself when he says Macy’s will succeed with the right goods at the right price and all the other details are irrelevant. Such details may be irrelevant in other cities, but Chicago is no other city. Why do Chicagoans consistently buy tickets to watch the Cubs lose games and end up near if not in last place? Why do Chicagoans consistently pay inflated prices to eat food outside at the Taste of Chicago during one of the hottest weekends of the year? Because these are truly unique Chicago experiences, ones that make us proud to be Chicagoans and ones that make enduring 6 months of winter each year worth living here. All of the seemingly insignificant changes Macy’s has made to the State Street store have destroyed the uniqueness of the retail experience. As I said in my second letter to Mr. Guzzetta, it all comes down to the name. Without the name Field’s, our eyes open to stores we may not have considered before, Target, Kohl’s and Carson’s at one end and Nordstrom, Saks and Barney’s at the other. With a name that everyone loves to hate, Macy’s lost the retail battle before it even started.
I believe Macy’s will continue to face an uphill and ultimately losing battle in the Midwest because they simply have no obvious market in cities where they have replaced the beloved Marshall Field’s name. It is NOT a communications problem and it is laughable to suggest so.
In just two months it is very obvious that Federated has taken Macy’s way down-market from Field’s and customers are not happy. There is simply no compelling reason for people to shop at Macy’s and many reasons to choose not to. A number of designers whose goods used to be carried by Field’s have removed their lines from Macy’s. Trust me, cutting edge young fashionistas (male or female) aren’t going to be caught dead in Macy’s, now.
For the budget shopper, Kohl’s has stuff that looks pretty much exactly like Macy’s merchandise mix for a lot less money.
Traditionalist working women are boycotting Macy’s on principle and older, wealthy, style and community leaders have plenty of upscale stores and boutiques from which they can buy clothing and housewares to impress their friends.
So who’s left to do their shopping at Macy’s? Based on the dearth of Macy’s shopping bags that one notices on the streets and commuter trains around Chicago, apparently nobody. An earlier commenter stated that Macy’s needs to just forget trying to appease the angry former Field’s shopper and start anew. But “start anew with what market segment?” would be my question. And why would Federated pay big bucks to acquire a legendary department store brand and building if they’re going to “start anew”?
For generations the Marshall Fields stores served as the bridal and bridal registry leader. There was a tradition in saying that your bridal gown or mother of the bride outfit came from Marshall Field’s. Tourists from around the world came to see, shop, and bring home souvenirs from the historic State Street Field’s and it has been said that last year it was the number three tourist attraction in Chicago. For Guzetta to point out that that the Marshall Field’s Frango candies, legacy Christmas ornaments, and cookbook are selling well sort of makes the point doesn’t it? Federated can say they are keeping the traditions alive that people loved about Field’s but all the “communication” in the world can’t make it the same experience for locals or tourists.
As a native Midwesterner and former Marshall Field’s shopper I am sure bias shows in my comments. But, professionally, as a lifelong marketing manager in a variety of industries I must say I have never seen such flagrant disregard for an existing and loyal customer base as Macy’s has recently demonstrated.
After the 9/11 attacks, the country was united. But what FDS forgot is that a lot of the time Chicagoans don’t agree with New Yorkers (the whole second city thing) so what did FDS do? Take away a very Chicago tradition and replace it with a New York one. Bad business move, bad move period.
It is becoming more and more obvious that FDS has made a huge mistake in the Chicago market. Quite simply, they do not understand the market. Marshall Field’s was not the same as most of the other May Company stores they acquired. While many of the May stores were middle market and quite similar to Macy’s, Marshall Field’s was a better store than Macy’s. It is the dumbing down of the store (especially State Street) which infuriates Chicagoans. Chicagoans, unlike most of the country, are generally not impressed with New York stores, restaurants, and clubs; especially when they come into the market convinced that they will educate us on how to shop or eat. That arrogance is the kiss of death in this market. Walk into Bloomingdale’s (either 900 N. Michigan or the Home Store on Wabash) on any weekday if you would like to see how unimpressed we are. We are not like San Franciscans, who apparently are fawning over the recently opened Bloomingdale’s as if it was the second coming.
I work in the Loop and see almost no Macy’s bags. Walking home along Michigan Avenue I see a few Macy’s bags near Water Tower, but nowhere near the volume of green bags of last year. The suburban stores are dead. Those markets have an abundance of Macy’s-like stores such as Kohl’s, Penney’s, Sears and Carson’s. The upscale Field’s customer has left for Nordstrom and beyond.
I have yet to meet one Chicagoan who thinks this has been a good idea. More often than not, when we see that red star we only see red.
Macy’s has done the same thing to Filene’s in the Northeast – different brands, less merchandise and so far, every time I go in to look around (and reading this has just reminded me that I have bought nothing there in months – due to the change of product) the store is not as busy as it used to be. Reminds me of the wonderful days of The Limited – great brands like “Outback Red,” etc., and variety… and now, the variety is limited to about a dozen similar styles in half a dozen colors… and less business because there isn’t much that sets them apart.
These big mergers in Retail never–as far as I can see as a consumer and a retail worker– result in lower prices and/or unique goods but I guess they must be good for Wall Street?
Marshall Field’s is a part of the Chicago soul and psyche. To misjudge this and discount the importance of the institution that Marshall Field’s WAS for Chicago is an even further insult upon insult by a misunderstanding Federated. For a while they seemed to have on Rose colored glasses saying they were “keeping the best of Field’s” and that there will be some problems which should smooth themselves out.
Anyone who knew Field’s knows the loss of fine merchandise and the replacement of that merchandise with inferior and expensive merchandise. There are way to many options for the Chicago shopper and while this might NOT be the case in all the other May Co. cities, it IS the case in Chicago. Perhaps in the South, Central Midwest, and Southwest, there are not the alternatives for shopping and people are simply left with Macy’s or nothing. HOWEVER in Chicago, one simply needs walk down the street or through the mall for a number of OTHER choices and this is a real problem for Macy’s in Chicago. I agree that the feel of the State Street store is completely different and feels “cheaper” to me also – as was mentioned.
If Macy’s had compelling merchandise that was high end and good quality, the Field’s shopper might have come back. This really is not the case and Macy’s in Chicago WILL have to try and find a new shopper and new demographic for shoppers in its stores. This will be very difficult in Chicagoland as there are TOO many middle and high end alternatives. The high end former Field’s shopper will simply go on to L&T, Von Maur, Nordstrom, NM, and SFA. The middle market shopper is really divided in Chicagoland with Carson’s, Penney’s, Kohl’s, Sears, Target, and stores like Marshall’s, TJMAXX, and Filenes Basement -all with multiple locales. The Value Shopper has the above mentioned stores and the other discount stores and are NOT going to pay $300.00 on a reduced Alfani jacket. This is a very difficult position for Federated to be in.
I live in Atlanta, and have seen a merry-go-round of store names in our market – Davison’s was bought by Macy’s in the 1920’s, who modeled their downtown store after Herald Square, and made it well known that they were part of R.H. Macy & Co. Then in 1986 they were renamed “Macy’s” and brought a high-end “Cellar” area to the downtown store.
After the Federated/Macy’s merger, Macy’s stores no longer were competitors with Federated’s Rich’s, they were almost like clearance centers. Finally they were all closed and two re-opened as Bloomingdale’s. Then Rich’s became “Rich’s/Macy’s,” and now it’s just “Macy’s.” After all this, Federated has the audacity to claim that the name conversion was a model for success elsewhere! What name conversion? There were always Macy’s in Atlanta, and Macy’s customers; they just ran off the (higher-end) Rich’s customers.
Marshall Field’s was a destination for people from all over the world, offering quality merchandise at fair prices, especially their store brand products. The traditions and service magnified the positive impression you got from the selection. It was the quintessential department store shopping experience.
Macy’s store brands are inferior in quality and more expensive than Field’s. Many of the higher-end vendors like Prada and Dolce & Gabbana either won’t deal with Macy’s because they’re too down-market, or Macy’s pushed them out so they won’t compete with Bloomingdale’s. I have witnessed staff at several Macy’s stores chatting in groups behind the counter, because their training instructs them to be cashiers, not salespeople. The cash registers are clearly labeled and price scanners and shopping carts dot the sales floor, all to avoid interaction between customers and employees for any longer than necessary.
Whoever is behind the changes that Macy’s is making to Marshall Field’s has no understanding of customer service. The customer treated like a queen when buying a $10 pair of socks will come back to buy a $100 purse and $1,000 in china. The customer treated like they’re in the checkout line at the grocery store will NOT be back.
Mike, that is the root of the problem. People are complaining because the right goods and right products are not there at the former Field’s store!
You all know I love this topic very much. I am a born and raised Chicagoan, who now works a large (non department store) retailer in the store design department here in Chicago.
I must say my personal opinion is that FDS really “shot themselves in the feet.” in Chicago.
Yes, the article claims Macy’s is making headway, but today in the same Sun Times, the same reporter is now reporting about FDS $3 million dollar loss related to the takeover of Field’s and other May Stores.
But let me convey some observations of what I see “on the street” here in Chicago as far as how people are accepting Marshall Field’s.
-I use Metra Commuter Rail everyday and see hundreds of people daily. I used to observe many outbound commuters carrying Marshall Field’s bags home from their work day in Chicago…out of 100 people, I would at least see 10 everyday, mostly women. Now, I have seen NO Macy’s bags with the same masses of people in Union Station or on the train. In fact I have seen more ladies carrying around the old Field’s bags, than I have seen Macy’s shopping bags.
-Bring this up in a topic at a dinner or lunch table anywhere in the Midwest and you are bound to have a bad after taste in your mouth. I bring it up to people whether at work or for fun, and the same resonating response is “How could they get rid of Fields? How could they get rid of Fields?” shaking their heads.
-Lastly based on media reports, Federated has done many things to “improve” customer service…including:
-eliminating free beverages for Regards customers. (per interview with Frank Guzzetta back in September in the Star Tribune)
-eliminating free delivery of a product if you it was not in stock at the store you are at. (Star Tribune)
-playing light rock instead of classy jazz in the store. (personal observation)
-eliminating cafes and cafeterias at may of the suburban stores. (personal observation)
-laying off maintenance staff at the State Street store. (per Chicago Sun Times)
-removing any classic photographs and anything related to Marshall Field’s at the State Street store (minus the archive) and replacing it with Macy’s EDV signage. (personal observation)
-Replacing many familiar popular brand names with products that sound like brand names, but are FDS brands: Alfani = Armani, Charter Club=Ralph Lauren. (personal observation)
-Banning Photography in all former Field’s store including State Street, which means customers won’t be able to photograph the Great Tree, take family pictures inside State Street Walnut Room, or take architectural photographs at State Street without written permission from FDS. (source: its on the door when you walk into State Street)
Now someone please correct me if I am wrong, but how are these changes going to win Chicagoans over? If I was a customer I would go running in the opposite direction!
When Nordstrom opened on Michigan Avenue and Oakbrook back in the 1990’s, there were lines to get into the stores for a week!
Macy’s had a line for about two hours and that was only at State Street on September 9th.
I must admit, from all the stores I have been to, all of the suburban ones have been dead. The only stores with a good amount of customers is State Street and Water Tower.
Something needs to be done before it’s too late!
I think talk about brand, events, language, bags etc. all miss the point. If Macy’s has the right goods at the right price they will ultimately win in the Chicago market irregardless of the nameplate. MF was not selling a lot that was significantly different and the sentimentalists probably miss the MF of the 1970s much more than they do the store of 2004 that was indistinguishable from any other May or FDS store except for the nameplate. Macy’s may struggle in Chicago but if they do (long run) it will not be because of the name.
Macy’s is undermining its own rationale for its single national brand strategy. Although the following language is from a Macy’s ad dated 11/7/2006 in the New York Times, it’s typical of many other Macy’s ads:
“This advertisement applies to Macy’s stores in NY (excluding Binghamton and Horseheads), PA (excluding Altoona, Frazer Heights, Greensburg, Hermitage, Homestead, Monaca, Pittsburgh, Scranton, State College, Washington, West Mifflin and Wilkes-Barre), VA (excluding Hampton, Lynchburg, Newport News, Norfolk, Richmond, and Roanoke), CT, DE, MA, MD, ME, NH, NJ, RI and VT.”
The Big Strategy: One brand name, national advertising, consistency. The execution: one brand name, inconsistency.
I am in Chicago on business this week. I took the opportunity to see exactly what Macy’s has done with Field’s. I am not impressed. The stores have a cheaper feel to them and you definitely notice a lack of Macy’s shopping bags on the street (compared to the sea of green Field’s bags one used to see). The store (Water Tower specifically) looks to be in chaos and the loss of better quality goods is apparent. I don’t foresee this Macy’s ever being the quality that Field’s was. In short… the stores have lost their special ambiance.
Macy’s has made a show out of being “less promotional” than Marshall Field’s and the other May divisions (which, if anything, had a heritage of being more promotional than Field’s). Hard to tell this is the case from the constant blizzard of newspaper inserts and particularly direct mail offers involving extra discounts for using your Macy’s card.
Trying to evoke “Field Days” during the Red Hot Sale is certainly not going to solve Macy’s issue of how to clean up its perception problems in Chicago. Their quarterly earnings and follow up comments to the press suggest that a big part of the October sales shortfall is happening in the Home Store, which is merchandised more centrally.
Perhaps one solution to this problem is to give the divisions (such as Macy’s North) more autonomy in running businesses like Home. Yes, it adds expense but Macy’s can’t afford long-term hits to the top line if the May acquisition is to be leveraged successfully. In the meantime, Macy’s needs to send a clear, consistent message to its target customer…once it figures out what the message is to be.
Adapting the communication message to have familiarity with the old Field’s message is nice, cute, and clever, but won’t work. It doesn’t make any difference how much the new communication sounds like the old communication when the policies, events, and procedures are different. It is NOT the Marshall Field’s that consumers knew with their specific sales events, procedures, merchandise, and consumer-centric approach. No amount of “Marshall Field’s” type communication will make those changes go away. Federated has never understood that consumers like the old store because of its policies, procedures, and processes that were consumer friendly.
Will the cost savings of having only one brand overcome the loss of sales? That analysis is based on the old oxymoron “intelligent loss of sales.” By abandoning the store brand names, Federated only bought the real estate of May. Since Target and Costco can both sell the same Asian made shirt at a lower price than Federated, it is only a matter of time until the Federated financials copy the flight of a maple leaf in the fall.
As a colleague in the New York market pointed out so clearly yesterday, “there is no point in comparing same-store sales in the former Marshall Field’s locations because it isn’t the “same store.” Macy’s really needs to consider this a fresh start and not try to hang on to the Marshall Field’s customer; they are gone and resent not only Macy’s but the social, demographic, and economic changes that the demise of Marshall Field’s represents in our country. Whether or not those are good changes is a different discussion.
To add to the very complete list above of the changes to the State Street flagship, add:
– Red neon strip lighting installed around the circa-1907 Daniel Burnham designed (and restored) North Atrium
– Papyrus gone and replaced with American Greetings, in case there is not a supermarket or discount drug chain store handy
– Store signage in Spanish
– The pen shop gone
Time to head to Nordstom, and Lord & Taylor while they are still there, Chicagoland. This is my family’s first Christmas with no Marshall Field’s (or Macy’s North) merchandise since 1937.
Oh my, another week, another “FDS has shot itself in the foot” discussion… can they possibly have any toes left?
I think this question really should have read ” Is Fed/Macy’s doing everything it can after it thoroughly alienated everyone in the first place ?”
As for when – if ever – “success” will be achieved, it obviously depends on how that term is defined: total sales have grown over the years (in no small part due to acquisitions) but the /sq. ft figures are lower (or at least no higher) than they were 10, 15 or (even) 20 years ago; the May pick-up seems destined to further that trend.
As for my own personal observations, when I was in the State St. store on a Saturday (sale day) it was uncomfortably – though marvelously so – crowded, but by Monday, it was church quiet ( I didn’t conduct a Metra survey…but the scenery on the Milw line was well worth the $5 weekend pass.)
Mike, I have to respectfully disagree with your comment, “MF was not selling a lot that was significantly different and the sentimentalists probably miss the MF of the 1970s much more than they do the store of 2004 that was indistinguishable from any other May or FDS store except for the nameplate.”
I am hard-pressed to think of any other May or FDS store with the possible exception of the flagship Bloomingdale’s where one could purchase a mink coat, a grand piano, a set of Waterman pens, take a break for a white tablecloth lunch with a bottle of wine, jump back in to buy a Lalique vase, pick up some paper plates and napkins, wrap the Lalique vase yourself from an entire wall full of by-the-sheet wrapping papers, send a gift-wrapped birthday present to a friend across the country, and end the day with take-out orders of mooshi pork and weinerschnitzel for those hard-to-please kids at home. THAT was shopping at Marshall Field’s State Street and if you think that is “any May or FDS store,” then let’s find a nearby Robinsons-May to explore.
We have lost a lot.
I agree with William Passodelis (his quote below)
“Anyone who knew Field’s knows the loss of fine merchandise and the replacement of that merchandise with inferior and expensive merchandise. There are way too many options for the Chicago shopper and while this might NOT be the case in all the other May Co. cities, it IS the case in Chicago.”
Without any prodding, 9 friends, all professionals, all employed and covering a demographic including white, Hispanic, black, gay, and straight have commented negatively on merchandise quality, selection, and overall feel of the converted Marshall Field’s stores.
Some Detroit stores employees indicate that package pickup is to be “discouraged” as the duties for this task have now been formally assigned to the “working managers” and if they are busy, forget getting your package downstairs quickly. When I questioned when that went into play, the exasperated reply was the day the name changed.
A long time salesman went out his way to apologize to me for the lack of tall/extra tall merchandise that replaced Field Gear. “Macy’s way to shop” for men sizing ends at XXL and doesn’t consider those of us who have a 36 inseam or a true 36 or 37 inch sleeve.
The management at FDS, according to reports, is expecting 4 million “visitors” to the State Street store this holiday season. They may not realize that the massive crowds that flooded State Street last year, gobbling pot pies under the great tree, snapping family pictures while standing in line at the Cozy Cloud Cottage and hoarding anything with the MF logo were there because the era was ending and many of the predicted dire consequences have come true.
Visitors may be the most accurate term for this holiday season. The tasteless red neon ringing every floor of the restored North State room may not contribute to hearty pot pie consumption–the notices at the doorways prohibiting any photographs will not encourage family memories at the Cozy cloud or the snapshot taken by the waitress with 50 years tenure at the Walnut Room.
If Terry Lundgren makes a surprise visit to his Chicago flagship this holiday season, he might very well find a store crowded with “visitors.” In January 2007, when sales figures are reported did the former Marshall Field’s customers obey the new “Way to Shop” rules?
“Chicagoans give it a rest,” says the former Marshall Field & Co.-Evanston store employee. Remember that moniker? When the twine was gold metallic and green trucks traversed the surface streets all over Chicago. And yes, it was before the now beloved and dearly departed Marshall Field’s.
The best quote I’ve heard is, “Comiskey is now US Cellular (Sox won the Series), the Stadium is the United Center (Bulls won three championships), Soldier Field changed and the Bears are on a tear and selling out every game.”
You see, the name game or the shape of the box matters little. What happens inside is what counts.
If Macy’s sells what folks want, it will succeed no matter how many boxes of Frangos are in each basket.
In the end, will you feel great putting that gift under your Christmas tree this year because the person that opens it will love the gift or that the box isn’t green?
Leave the emotions for the cocktail party. We are here to sell more tomorrow than a year ago.
It’s tough love, but remember, “retail ain’t for sissies!”
A very lively discussion. Federated/Macy’s made a terrible mistake renaming the Chicago area stores, especially the State Street flagship.
If this Christmas shopping season turns out to be poor in comparison to same store sales last year operating as Marshall Fields, they, FDS, should just swallow their pride, like the aftertaste of a can of “New Coke,” and allow the State Street Store to revert back to being called Marshall Field’s.
Then they can bring back the better merchandise, and set up Field’s departments in their downtown Minneapolis and larger former Marshall Field’s stores.
As the first writer stated, the Macyfication is not working. Reading all of that fine print on the bottom forth of each Macy’s ad is hilarious. This all means that the former May stores are Macy’s in name only.
Bring the Field’s green back to State Street, before the red ink gushes all over future FDS financial reports, and sinks the FDS/Macy’s ship for good.
J. McKay, editor of http://www.fieldsfanschicago.org, wrote me that he has heard from “diverse, well placed sources” (consider that as you wish) that sales at State Street are down at least 30%. If the former May stores are down 6% overall and the former Field’s stores down 10% overall, is this figure a real possibility? According to the 21st Annual Holiday Survey of retail spending and trends, commissioned by Deloitte & Touche, 25% of Chicago area shoppers said they will shop less at Macy’s this holiday than they did at Field’s. Another 4% said they would shop more at Macy’s and 37% said it made no difference. The remainder didn’t shop at Field’s last year and don’t plan to shop at Macy’s this year. So of the 66% that did shop Field’s last year, 38% (25/66) plan to shop less. And at http://www.nbc5.com, a survey found over 80% of web site visitors are avoiding Macy’s because of the name. This doesn’t sound like a communications problem to me. Chicago — for whatever reasons, emotional and rational — is not happy with the switch. In Safeway vs. Chicago, Safeway talked until it was blue in the face and Chicago dealt it considerable losses in equity and market share. In the face of such an overwhelming negative response, to think that a strategy of pumping up marketing and merchandising will reverse the trend does not show much business savvy. Mr. Lundgren, do you want to save money or make money? If you want to make money, then take State Street out of your national Macy’s chain and turn it into back into a Field’s that rivals Barney’s or Bergdorf Goodman. Restore the brands like Jimmy Choo and D&B. Restore the private labels like Field Gear (which you can also sell at Macy’s). Restore the green awnings and bags and take down that ridiculous red neon. You’ll find that your increase in sales by having the best department store, rather than the biggest, far outweighs the costs. I mean please. Is the cost of paper bags worth the loss of customers? And if you still insist on saving money, you may as well just shut the State Street store now because you truly do not have a grip on the State Street customer.
I remember my first visit to Marshall Field’s in 1982. It was the Water Tower Place Store. My mom bought some shoes, and she was given a wonderful shopping bag that she had for several years. It had the Chicago Skyline in the background, and the signage on the bag said, in big green letters: “Marshall Field’s IS Chicago!” That pretty much said it all. Coming up from Western Illinois, it was a treat for her (and myself) to see the selection at MF compared to what we had in Galesburg, Peoria, etc. Not knocking these smaller markets, but it wasn’t the same. Now, Peoria: Macy’s, Springfield: Macy’s, Carbondale: Macy’s, Chicago: Macy’s…Whoop de do.
Terry Lundgren said in the Chicago papers this week that “Marshall Field’s couldn’t make it in Texas, they couldn’t make it in Columbus…” Well, Columbus used to be “Lazarus,” Texas “Foleys” (among others). The problem is these stores became the “same”…down to the same tile and fixtures on the sales floor. If we wanted that type of sameness we will go to Sears or Penney’s. This strategy of making a national “brand” upper level department store for the masses just won’t work.
When the former OT Johnson’s department store building burned down earlier this year in Galesburg, IL; the local paper was filled with local citizens remembering shopping there. One reader mentioned that her mother was one of the costume jewelry buyers, who made trips to New York 3 or 4 times a year to scout vendors for special pieces that she knew her local customer in Western Illinois would like. How special is that? Every city or region, big or small, had their own nicer department store that reflected the local taste. Now the buyers in god knows what city (most likely far, far away from most of us) are making these decisions….
I’m a lifelong Chicagoan like many others who have added their comments here. I’m not speaking here as a marketing expert, just a shopper. But any native Chicagoan could have told Macy’s what would happen if they messed with Marshall Field’s. I know people who wouldn’t consider shopping anywhere else.
Though I didn’t shop at MF frequently myself, I would go there for nicer things, especially for gifts for others. The green boxes and bags had a certain cache. It was almost a joke–you’d save the box and re-use it just for the label. Field’s staff was always helpful and congenial — no, make that “gracious.”
I haven’t been to Macy’s since they changed the name. I don’t plan to shop there ever. With the name change, they disrespect Chicago. It’s just that simple. At a family Christmas gathering, with reports that Macy’s holiday sales were down, we were all rather pleased and hoping now they’d pack up and go back to New York.
I might add, Macy’s only rubbed salt into the wound when the store opened with signage that mislabeled the streets outside. Yes, it may be a “Second City” thing. It was like these “red-hot” New Yorkers were going to come in and show Chicago how it was supposed to be done. OK, we’ll see how that works over the long-term.
Similarly, a Chicago grocery chain, Dominick’s, is now being run by Safeway. Everything is overpriced and I think they changed the arrangement of merchandise on the shelves just to confuse people. Men in suits constantly run around with clipboards. Safeway widened the aisles and the produce is arranged very prettily, but I don’t shop there anymore, either, when I can go two blocks down and buy the same merchandise for about 15% – 20% less.